safety record, and track record of on-time service. You can gather this information through industry databases, audits, and peer recommendations. • Reputation and references: The business aviation industry is small. Ask peers for recommendations and contact former clients for in-depth references. Go beyond the provided reference list to get a more complete picture of the vendor’s reputation. • Operational security: Evaluate how vendors handle security, especially when it involves access to your aircraft or sensitive information. This includes background checks for their employees, access control procedures, and data security policies. DUE DILIGENCE AND FINANCIAL STABILITY • Background checks: Vetting should be as rigorous as the process for hiring new employees. Conduct background checks on prospective vendors’ employees, especially those who will have direct access to your aircraft or crew. • Financial health: Perform a financial review to ensure the vendor is stable and can fulfill the terms of the contract. This includes reviewing ownership information and credit reports. • Insurance and licensing: Confirm that the vendor has the appropriate insurance coverage and licensing for the services they provide. Review policies for both primary and secondary vendors in their service chain. • Site visits and audits: Conduct periodic site visits to review the vendor’s processes and facilities. Ensure their employees are following established procedures and that their security standards are being upheld. CONTRACTUAL AND PERFORMANCE DETAILS • Clear scope of work: Define the scope of work, responsibilities and key performance indicators in a clear contract.This minimizes disputes and ensures expectations are transparent for both parties. • Training requirements: Verify that the vendor’s personnel are properly trained and certified for the work they perform. This is especially important for maintenance and ground handling services. • Disaster recovery and contingency: Understand the vendor’s business continuity and disaster recovery plan.This is crucial for managing disruptions to the supply chain caused by events like natural disasters or geopolitical issues. • Termination and payment: Include clear termination clauses and a detailed payment schedule in the contract. For contract flight crews, negotiate a retainer or a guarantee for their availability, even if a trip is canceled. • Monitoring and feedback: Establish procedures for ongoing performance monitoring and regular feedback.This ensures the vendor continues to meet your standards and allows for collaborative process improvements. 8 AVIATION VIEW MAGAZINE VOLUME 05, ISSUE 04
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